Source: TopForeignStocks.com

Economic crises are cyclical, they happen every 7-10 years. Although some are more severe than others, a recovery period ensues and after recovery comes growth and after growth over speculation and leveraging and crisis again. Economists can't predict the exact year and magnitude of a crisis, but they can see some signs earlier on and they can recommend corrective instruments during a crisis.

These days we can no longer talk about an US crisis, Asian or EU markets or health crises, we are simply interconnected in a globalized socio-economic context. We trade, travel, live and work globally. A virus outbreak in China will have casualties in Italy and some bad financial instruments issued by Wall Street in the US will bankrupt a small town in Norway.

The discussion among global economists community has always been about the balance between the sovereign state governments and multinational corporations. We are looking at the our governments to intervene when market economies are struggling, by using instruments or measures that only a national bank or treasury department can use: reducing interest rates, injecting capital into the markets, reducing taxes or declaring a national emergency situation. On the other hand, governments need the help of global companies who have the power of informational penetration, technical capabilities and their sheer economic power. It is when global corporations- some valued at more than most countries GDP’s can demonstrate that they are ‘ doing well by doing good’. It’s when the increased regulating vs deregulating discussion is on hold until a crisis is resolved.

On the other hand, we must not forget that all the recent decades interconnections and global interactions helped and lifted a lot of people out of poverty, giving access to education, information, economic tools and enabling traveling. From time to time, we have to remember that as the world keeps changing, so do the global human socio-economic behavior pattern and the possible problems derived from it. There is a need of finding new solutions to the new crises, starting at the local level and extend it to the global ecosystem.

Eventually, people move on, markets recover, we make similar mistakes, ride high on the wave of recovery and growth..until the next crisis.

Here are the statistics of the world economic crises recoveries to keep in mind while going through this one:

* Black Monday (8/25/87-12/4/87) - US stocks dropped 33.5% and recovered 21.4% within 12 months.
* Gulf War (7/16/90 - 10/11/90) - US stocks dropped 19.9% and recovered 29.1% within 12 months.
* Asia Monetary Crisis (7/17/98 - 8/31/98) - US stocks dropped 19.3% and recovered 37.9% within 12 months.
* Tech Bubble (3/27/00 - 10/9/02) - US stocks dropped 49% and recovered 33.7% within 12 months.
* Financial Crisis (10/9/07 - 3/9/09) - US stocks dropped 56.8%, and recovered 68.6% within 12 months.
* US Credit Downgrade (3/10/11 - 10/3/11) - US stocks dropped 19% and recovered 32% within 12 months.
* US Trade Wars (10/3/18 - 12/24/18) - US stocks dropped 19.6% and recovered 37.1% within 12 months.